Updated October 8, 2026. Quick answer: Los Angeles Fire and Police Pensions (LAFPP) pays a sworn Tier 5 or Tier 6 member a service pension from age 50 with 20 years of service: 50% of final average salary at 20 years in Tier 5, 40% in Tier 6. The main election is the Optional Survivor Benefit, a continuance of up to 100% in 5% increments that is irrevocable and must be made before the first payment or DROP entry. DROP, open at 25 years of service and age 50, holds the pension in an account earning 5% for up to five years. Withdrawing contributions forfeits every pension right.
What this page covers
This page covers sworn members of Los Angeles Fire and Police Pensions (LAFPP) in Tier 5 (hired January 1, 2002 to before July 1, 2011 for Fire and Police) and Tier 6 (hired on or after July 1, 2011), read from the two Summary Plan Descriptions (SPDs), the DROP Handbook and LAFPP’s COLA page. Tiers 1 to 4 are not covered; civilian City employees belong to a different system, covered at LACERS retirement decisions. Other systems are at public pension retirement decisions. The Tier 6 SPD warns: “If there is a difference between this SPD and the legal text, the legal text prevails.” On Social Security, it says: “As a member of Tier 6, you do not contribute to or earn Social Security credit based on your City employment.” The Tier 5 SPD says the same for Tier 5.
Tier 5 and Tier 6 side by side
| Item | Tier 5 | Tier 6 |
|---|---|---|
| Service pension eligibility | Age 50 and 20 years of service | Age 50 and 20 years of service |
| Final average salary period | Any 12 consecutive months | Any 24 consecutive months |
| Percentage of salary at 20 years | 50% | 40% |
| Percentage of salary at 28 years | 74% | 67% |
| Maximum percentage | 90% at 33 years of service | 90% at 33 years of service |
| Member contribution | 8% or 9%, depending on plan funding | 11% (9% regular plus 2% toward retiree health) |
| Survivor share after a service pension | 60% of the pension | 70% of the pension |
| DROP entry | 25 years of service and age 50 | 25 years of service and age 50 |
| COLA | 3% cap with a COLA bank | 3% cap with a COLA bank |
Tier 5 defines final average salary as “the average of your monthly pay at your permanent rank over any 12-consecutive-month period you choose (usually the 12 months just prior to your retirement)”; Tier 6 uses “the average of your monthly pay at your permanent rank over any 24-consecutive-month period you choose (usually the 24 months just prior to your retirement)”.
Working the pension, with an example
The Tier 6 SPD works an example: “You retire with exactly 28 years of service and you are over age 50”, with “Your Final Average Salary is $5,110.34”. At 67% for 28 years the SPD lists $3,423.93, and $5,110.34 times 67% recomputes to $3,423.93.
A computed example from an assumed $8,000 final average salary, not an LAFPP figure: at 28 years, 74% of $8,000 is a computed $5,920 a month under Tier 5 and 67% of $8,000 is a computed $5,360 a month under Tier 6. The tiers average different periods, so the example only isolates the percentage gap.
The election: standard survivor continuance or the Optional Survivor Benefit
The documents read describe no menu of option letters. The election that changes the pension is the Optional Survivor Benefit; without it, the standard continuance applies. The Tier 5 SPD gives “A monthly pension benefit equal to 60% of your total monthly service pension benefit at the time of your death” and the Tier 6 SPD gives “receives a monthly pension benefit equal to 70% of your total pension benefit at the time of your death”.
| Choice | What it does to the member’s payment | What a survivor receives |
|---|---|---|
| Standard continuance (no election) | The pension, not reduced for survivor protection | Tier 5: 60% of the pension. Tier 6: 70% |
| Optional Survivor Benefit | A pension reduced for life (size set by ages and actuarial assumptions; no percentage published in the pages read) | A chosen continuance of up to 100%, in 5% increments |
| Survivor Benefit Purchase Program | A pension reduced by the full actuarial cost, for a spouse or partner after retirement | A chosen percentage that vests after one year |
| DROP | Regular pension from exit plus the DROP account | Regular tier survivor pension plus the account to the beneficiary |
On the optional election, the SPD says: “You may elect a continuance benefit for your Qualified Surviving Spouse or Qualified Surviving Domestic Partner up to 100% of your pension, in 5% increments.” The cost is that “your pension benefit payment is reduced throughout your lifetime to pay for the increased survivor benefit”. “The size of the reduction is based on the ages of you and your Qualified Surviving Spouse or Qualified Surviving Domestic Partner and on the current actuarial assumptions adopted by the Board at the time you retire.” For a spouse or partner acquired after retirement, a separate purchase program exists: “The right to benefits under this program does not vest until you survive at least one year from the date you elected to provide this benefit, unless your death is determined to be accidental by the Board.” See single-life vs joint-and-survivor pension.
A computed example from the assumed $8,000 salary, not an LAFPP figure: the standard continuance is 60% of the assumed Tier 5 $5,920, a computed $3,552 a month, or 70% of the assumed Tier 6 $5,360, a computed $3,752 a month. A higher continuance would cost a reduced pension that LAFPP computes at retirement.
What is irrevocable, and the deadlines
On the Optional Survivor Benefit, the SPD says: “This option is irrevocable.” “You must elect it before you receive your first pension payment or enter the DROP Program.” “The reduction remains in effect even if your marriage or domestic partnership dissolves or your spouse or domestic partner predeceases you.” DROP is the other one-way door: “You have through the day preceding your DROP entry effective date to change your mind after you apply for DROP.” “Thereafter, you cannot exit DROP without terminating employment.”
| Step | Timing stated | Document |
|---|---|---|
| Counselor appointment before retiring | At least three working days before the retirement effective date | Tier 6 SPD |
| Department liaison appointment | At least six weeks before the desired retirement date | Tier 5 SPD |
| Optional Survivor Benefit | Before the first pension payment or DROP entry | Both SPDs |
| Service credit purchases | Complete before retirement or DROP entry | Both SPDs |
| DROP entry appointment | No more than 60 days and no less than 3 days before entry | DROP Handbook |
| Revoking a DROP election | No later than the day before entry | DROP Handbook |
| DROP distribution forms | Within 90 calendar days after the exit date | DROP Handbook |
| Deferred pension election | Within three years of termination | Both SPDs |
| Unwithdrawn contributions | Ten years from termination | Both SPDs |
DROP: what it locks in
DROP is “a voluntary program that allows you to have your monthly pension benefit deposited in an interest-bearing account while you continue to work in your current department and receive your salary and benefits as an active employee”. For Tier 5 and Tier 6 the eligibility row reads “You have at least 25 years of service; and are at least age 50”. “Consider the age at which you plan to exit DROP, take distribution of your DROP account and the related tax consequences before making a decision to enroll.”
On entry, “Your monthly service pension is calculated on the day you enter DROP.” “This means you stop accruing years of service credit, and any increases or decreases in salary will not affect your service pension.” After that, “your entire monthly service pension amount will be deposited into your DROP account”, and “your DROP account will earn interest at 5% per year”. The Handbook warns on promotions: “If you think a promotion may be forthcoming, you may want to consider delaying your entry into DROP.”
“You may participate in DROP for a maximum of 5 years/60 months.” For entries on or after February 1, 2019, “your participation in DROP will be suspended for any calendar month in which you do not spend at least 112 hours on “active duty” status”, and “If your DROP participation is suspended, you are eligible to participate in DROP for up to 30 additional months beyond your original 5-year/60-month participation period”, but “Your participation period can only be extended for as many months as your participation was suspended”. A serious on-duty injury with a hospital stay of at least 3 consecutive days prevents suspension during the first 12 calendar months after the injury. “No interest will accrue or be credited to your DROP account following the initial 5-year/60-month participation period, including any periods of participation suspension.” Refund rights end: “Once you have enrolled in DROP, you are no longer eligible for a refund of pension contributions.” A disability pension forfeits the account: “you must forfeit your entire DROP account should you receive the disability pension”.
A computed example from an assumed $8,000 salary, not an LAFPP figure: 60 monthly deposits at the assumed Tier 6 pension of $5,360 total a computed $321,600, before interest and COLA.
If a member dies in DROP, “the normal post-retirement survivor pension benefits provided by your tier will be paid to your qualified survivor(s), in addition to the proceeds of your DROP account”. A marriage during DROP is not protected: “Your marriage will be deemed to be a marriage occurring post-retirement, and your spouse will not be eligible for survivor benefits.” A divorce touches the account: “Some or all of your DROP account and/or subsequent monthly pension benefit may be subject to division of community property pursuant to your dissolution judgment or order”.
Leaving DROP: lump sum, rollover or both
At exit, the Handbook says “you must choose between (1) a lump sum cash payment of your DROP account balance, (2) a rollover of the balance in your DROP account to an IRA or other tax-qualified retirement plan, or (3) a combination of a partial rollover to an IRA or tax-qualified retirement plan and a lump sum cash distribution of the balance”. “All funds in the DROP account are likely to be taxable, in full, upon distribution.” On withholding, “LAFPP must withhold 20% for federal income taxes, but a 2% California state withholding is optional”. “To avoid the mandatory 20% federal withholding, you must elect to rollover the full taxable amount of your DROP account to a tax-qualified plan.” See 20% withholding on a pension lump sum.
A computed example from an assumed $300,000 taxable DROP balance taken as a lump sum, not an LAFPP figure: 20% of $300,000 is a computed $60,000 withheld for federal tax.
The deadline carries a default: “if you fail to meet the 90-day deadline, as a default, LAFPP will distribute your DROP account as a lump sum cash payment only, subject to a mandatory 20% federal tax withholding for the entire account balance”. Payout can slip: “Depending upon your DROP exit date, this may delay the distribution of your DROP account for a minimum of one month after your exit date.” Interest ends too: “no interest will be applied to your DROP account once you have terminated your participation in DROP”.
Leaving before retirement: refund or deferred pension
Withdrawal: “In the event that your employment is terminated, you may request a withdrawal of your contributions and interest immediately upon termination.” “When you withdraw your contributions, you forfeit your rights to any and all pension benefits, including a disability pension.” Interest stops: “With the exception of a Deferred Pension election, your contributions no longer earn interest upon termination”. See pension refund vs leaving it.
The deferred pension alternative: the Tier 6 SPD says “Tier 6 members with 20 or more years of service credit who terminate employment prior to age 50 for any reason other than disability, are eligible for a deferred service pension”, with “you must leave your contributions in the Plan and make an irrevocable election within three years of your termination date”. The percentages are lower: the Tier 5 SPD says: “A deferred pension is calculated in the same manner as a regular service pension using the lower Tier 3 pension percentages.” The Tier 6 SPD uses the Tier 3 percentages too. The schedule gives “20 yrs. = 40%” at 20 years.
A computed example from an assumed $8,000 salary, not an LAFPP figure: a Tier 5 member with 20 years gets 50% of $8,000, a computed $4,000 a month, on a regular pension, but 40% of $8,000, a computed $3,200 a month, on a deferred one.
A refund is taxable income: the Tier 6 SPD says the part not previously taxed “is subject to federal and state income taxes for the year in which you receive it”. It adds that “if those same non-taxed funds are withdrawn prior to age 50, they are subject to a tax penalty of 10% to the federal government and 2½% to the state of California”. To postpone tax, the SPD says “you may roll over the entire amount of the non-taxed portion of the contributions and interest into an individual retirement account (IRA) or another tax-qualified plan”. The Tier 5 SPD uses the same structure. See California retirement taxes and does California tax pensions.
Buying service credit
Recruit training time: “Drill Tower or Academy graduates are given a one-year grace period from the date of graduation to pay this amount without interest.” “If, however, the contributions are paid after the one-year grace period, these graduates are responsible for paying the interest.” For public and military service, “One of the key provisions is that the program must be cost neutral”, meaning “you are responsible for paying the full cost of increased pension and survivor benefits gained from the additional years of service purchased”. “Purchased service credit will not count toward health subsidy credit or eligibility for a service pension or eligibility to enter DROP.” “All service credit purchases must be completed prior to retirement or entry into the Deferred Retirement Option Plan (DROP) Program.” See the pension buyback calculator.
Cost-of-living adjustments
“The Cost of Living Adjustment (COLA) is 2.9% for 2026 and was approved by the Board of Fire and Police Pension Commissioners on April 2, 2026.” “Tiers 5 and 6 have a 3% COLA cap and cannot incur an increase/decrease beyond the cap.” The page adds that “they also have a COLA Bank to store any increases in the CPI greater than 3%, which can be applied in future years when the CPI is below 3%”. With a CPI of 3.2%, “as a Tier 6 member you would receive a 3.0% COLA because there is a 3.0% cap and the 0.2% is banked”.
A computed example from the assumed $5,360 Tier 6 pension, not an LAFPP figure: a 3% COLA adds a computed $160.80 a month. “in the event of a negative COLA, the pension amount will not be reduced to less than the member’s or qualified survivor’s original pension amount”
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of LAFPP’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. LAFPP’s DROP Handbook describes the same 20% federal withholding on a lump sum and the same rollover exception. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the documents differ
The Tier 6 SPD says unwithdrawn contributions “contributions that are not withdrawn within ten years from the termination date will be forfeited to the Plan”, while the Tier 5 SPD says “contributions that are not withdrawn within ten years from the termination date may be forfeited to the Plan”, so LAFPP should confirm the Tier 5 rule. The SPDs put the early withdrawal penalty “prior to age 50”, while the IRS list above names separation after age 55 and public safety employees; a tax preparer should confirm which applies.
What this page could not settle
- The pages read do not state how much the Optional Survivor Benefit reduces the pension at any continuance level.
- The pages read do not describe a lump sum retirement option other than the DROP account distribution.
- The pages read do not state a spousal consent rule for a refund or for the standard survivor continuance.
- The pages read do not give an interest rate for contributions or a price for any service credit purchase.
- Tiers 1 to 4, disability pensions and the retiree health subsidy were not worked through, and the SPD covers (May 2020 and July 2020) do not show whether every paragraph reflects later changes.
Common mistakes
- Treating the Optional Survivor Benefit as changeable later; both SPDs call it irrevocable.
- Assuming a spouse married after DROP entry is covered; the DROP Handbook says the marriage is treated as post-retirement.
- Buying service credit after the retirement or DROP entry date; the SPDs require purchases to be completed first.
- Withdrawing contributions without weighing what ends; the SPDs say a withdrawal forfeits all pension rights.
Related on this site: public pension retirement decisions, LACERS retirement decisions, California retirement taxes, does California tax pensions, single-life vs joint-and-survivor pension and pension refund vs leaving it.
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Answer againSources
- Los Angeles Fire and Police Pensions (LAFPP), Fire and Police Pension Plan Tier 5 Summary Plan Description (cover dated May 2020): https://content.lafpp.lacity.gov/wp-content/uploads/2023/06/tier_5_spd.pdf
- Los Angeles Fire and Police Pensions (LAFPP), Fire and Police Pension Plan Tier 6 Summary Plan Description (cover dated July 2020; file posted March 2026): https://content.lafpp.lacity.gov/wp-content/uploads/2026/03/TIER-6-SPD-3.2026.pdf
- Los Angeles Fire and Police Pensions (LAFPP), Deferred Retirement Option Plan (DROP) Handbook (undated edition): https://content.lafpp.com/wp-content/uploads/2023/09/drop_handbook_web_1.pdf
- Los Angeles Fire and Police Pensions (LAFPP), Cost of Living Adjustments (COLA) (web page, read October 8, 2026): https://www.lafpp.com/members_information/cost-of-living-adjustments-cola
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 8, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.